By filing for Chapter 9 bankruptcy protection, a section of federal law for municipalities facing insolvency, the city will be able to renegotiate labor contracts, stall payments to creditors and insulate the city from large lawsuit judgments, City Atty. James Penman said. Those protections will allow San Bernardino to retool its budget process and departments and wean itself back to financial health, he said.

Photo: Mayor Patrick J. Morris outside of San Bernardino City Hall on July 11. San Bernardino became the third California city in less than a month to seek bankruptcy protection Tuesday. Credit: Irfan Khan / Los Angeles Times